PEPPOL in Germany: How it Works, Benefits, BIS Format

PEPPOL in Germany has become the basic infrastructure of the standard and safe electronic exchange of documents between the business and the public administrations. It has been developed based on a single PEPPOL format, which makes it easier to invoice, procure, and meet European eDelivery standards. 

By implementing the Germany PEPPOL system, the businesses are made similar, automated, and interoperable in the local and global supply chain.

Key Takeaways

• PEPPOL Germany standardises e-invoicing for public and private organisations.
• PEPPOL BIS standard (Business Interoperability Specifications) is compatible with EN 16931 standard.
• A PEPPOL Access Point acts as a secure digital gateway between senders and receivers.
• To transmit or receive invoices through the network, businesses must have a valid PEPPOL ID.
• XRechnung integration guarantees the full adherence to the German invoicing rules.

What is PEPPOL?

PEPPOL (Pan-European Public Procurement Online) is an initiative that was pioneered by the European Union, and the program seeks to harmonize the electronic transfer of invoices, orders, and the procurement documents. It is based on a universal PEPPOL format and a secure network of certified access points so as to ensure smooth interoperability of countries and systems.

How PEPPOL Works in Germany

The German PEPPOL uses a decentralized but standardized digital network that provides businesses with an opportunity to securely and efficiently exchange electronic documents. It does not require any custom integration or bilateral connection, so interoperability is guaranteed among the entire EU member states.

This is based on PEPPOL 4-Corner Model and every participant is connected by certified PEPPOL access points. The structure ensures integrity, traceability and compliance of the end-to-end compliance to EU and German invoicing standards.

PEPPOL Germany network eliminates format incompatibility and human intervention, leading to an efficient, transparent and secure process of e-procurement.

PEPPOL BIS Format & Examples

PEPPOL BIS (Business Interoperability Specification) is a structured data model that is used to construct and transfer business documents in the PEPPOL network. BIS 3.0 format is also fully compatible with EN 16931 and is able to reflect an XRechnung invoice of public entities in Germany.

This PEPPOL standard guarantees the consistency and validation of data across software systems making automation possible without errors. The BIS format is the basis of interoperability of the European business systems.

What is a PEPPOL Access Point?

The PEPPOL access point is the entry point where organizations are connected to the world wide PEPPOL network. It transmits, authenticates and secures e-documents within standardization rules of communication.

Key Responsibilities:

• Validates and routes electronic documents in PEPPOL format.
• Encrypts data for secure transmission between trading partners.
• Ensures compliance with national (XRechnung) and EU standards.
• Manages participant directories and PEPPOL IDs.

Every organization must use a certified PEPPOL Access Point to participate in the network, similar to how an Internet Service Provider connects users to the web.

What is PEPPOL ID in Germany? How to Register for It?

A PEPPOL ID is a unique electronic address that identifies each participant in the Germany PEPPOL network. It enables accurate routing and authentication of documents within the PEPPOL 4-corner model.

Format Example:
 9930:DE123456789

• 9930 - Country code for Germany.
• DE123456789 - Company’s VAT or business identification number.

PEPPOL ID Registration Process in Germany:

1. Choose a certified PEPPOL Access Point provider.
2. Submit your organization details (legal name, VAT, and contact information).
3. Undergo validation and verification by the provider.
4. Obtaining PEPPOL ID and connecting it to the ERP/e-invoicing system.

Every entity involved in the Germany PEPPOL framework is required to have a valid PEPPOL ID to have verified, traceable, and compliant transactions.

Sender ID and Receiver ID

In the PEPPOL framework of Germany, the Sender ID is the one that issues the document and the Receiver ID is the receiver, who could be a government authority, government institution or a business enterprise.

The dual-ID frame in Germany PEPPOL ensures transparency, removes redundancy and provides a key element of regulatory compliance in the form of a legally verifiable audit trail by invoicing in the public and those in cross-border conditioning.

Who Should Use PEPPOL in Germany?

PEPPOL Germany is designed for organizations involved in electronic procurement or invoicing with the public sector and cross-border partners.

Key Users Include:

• Suppliers invoicing German federal or state authorities (B2G).
• Private companies engaged in EU-wide B2B invoicing.
• Accounting software vendors integrating e-invoicing automation.
• Multinationals streamlining document exchange across subsidiaries.

Adoption ensures compliance, cost efficiency, and improved visibility in financial operations.

Benefits of PEPPOL in Germany

The implementation of PEPPOL Germany brings measurable benefits in both compliance and efficiency. Beyond basic invoice standardization, the framework enhances automation, security, and integration across business systems.

PEPPOL vs. XRechnung

Although both PEPPOL and XRechnung are used as the digital invoicing ecosystem, they should not be confused. The data structure (format of content) is defined by XRechnung and the communication network (delivery mechanism) is defined by PEPPOL.

PEPPOL defines how documents move, XRechnung defines what they look like. Together, they create Germany’s e-invoicing backbone.

Using both ensures interoperability and compliance with all government requirements.

What is the PEPPOL 4-Corner Model?

The PEPPOL 4-Corner Model defines how participants exchange data securely. It enables independent communication between systems while maintaining standardized interaction.

1. Corner 1 - Sender (Supplier): Creates the invoice in PEPPOL BIS format.
2. Corner 2 - Sender Access Point: Validates and sends the document securely.
3. Corner 3 - Receiver Access Point: Authenticates and delivers the message.
4. Corner 4 - Receiver (Buyer or Authority): Processes and archives the document.

This model guarantees interoperability and neutrality, no direct integration is needed between trading partners.

How to Get Started with Peppol in Germany (step-by-step guide)

Implementing PEPPOL Germany involves a structured sequence to ensure compliance, security, and seamless integration with existing systems. 

1. Identify Your Business Requirement: Determine if your invoicing is B2G (to public authorities) or B2B (to private entities).
2. Select a Certified PEPPOL Access Point: Partner with an authorized service provider recognized by OpenPeppol.
3. Register for a PEPPOL ID: Submit your VAT or company registration details for verification and obtain your unique identifier.
4. Integrate with Your ERP or Accounting Software: Configure your system to generate and read invoices in PEPPOL BIS 3.0 format.
5. Conduct Testing: Send trial invoices through your Access Point to validate format compliance and routing accuracy.
6. Deploy Operationally: Begin full-scale invoice transmission and monitor delivery confirmations within the Germany PEPPOL network.

Following this procedure ensures that your business becomes an active participant in the PEPPOL Germany ecosystem - streamlined, compliant, and digitally mature.

Conclusion

PEPPOL in Germany facilitates cross European e-invoicing through the ease, security and compliance of e-invoicing. Organizations have the benefit of interoperability, automation, and legal certainty through PEPPOL BIS format, access points and unique PEPPOL IDs. By adopting this network, businesses are placed in a digital efficiency position and also in line with the changing regulatory standards in Germany.